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Oil & Gas

SDX sees potential to extend South Disouq’s gas output plateau to 2026

SDX
Posted: June 25, 2020 at 2:26 pm   /   by   /   comments (0)
  • Added prospectivity in South Disouq concession.
  • Gas sold at fixed rate $2.85/Mcf to EGAS.

UK-listed upstream junior SDX Energy said June 23 it hopes to be able to extend the plateau gas production rate at its flagship South Disouq block onshore Egypt until 2026.

SDX — which started production at South Disouq in November last year — said a new discovery at the block with the Sobhi well and hopes for more drilling success would help prolong the current output rate of 50 MMcf/d (1.5 million cu m/d).

“With Sobhi, we expect to extend our gross 50 MMcf/d plateau production by 18-24 months to 2023 and, with some follow on drilling success, this could be extended further into 2026,” CEO Mark Reid said in a statement.

“Sobhi has also helped us identify approximately 100 Bcf of follow on, de-risked, incremental prospectivity in the South Disouq concession,” Reid said.

All of SDX’s Egyptian gas production is sold to the Egyptian national gas company, EGAS, at a fixed price of $2.85/Mcf, with the government of Egypt’s entitlement share of gross production equating to around 51%.

(Source: S&P Global Platts)

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